The US Securities Watchdog scrutinizes non-fungible tokens (NFTs) to determine if they are eligible for securities and keeps them within that range. Regulators are in talks with the creators of NFTs and the entities on which they are sold, according to sources within the Securities and Exchange Commission (SEC).
As the NFT market has become one of the most active in the digital asset space, regulators have gained worldwide attention. Some say that NFTs, like South Korea, are not subject to regulatory regimes that regulate Bitcoin and other digital currencies.
However, the SEC believes that NFTs may be used to raise funds like traditional securities and has jurisdiction over this sector.
Sources within the regulatory agency told Bloomberg that SEC executive lawyers have sent subpoenas requesting information on the sale and provision of NFTs over the past few months.
One of the greatest concerns for SEC lawyers is the fractional NFT, which is disassembled and sold to multiple investors. This is one of the parameters of the Howey test that the SEC uses to measure which assets are securities, “money to the general public with reasonable expectations of the profits from the efforts of others. I am interested in the SEC, considering that it involves the investment of. “
The SEC declined to comment on the investigation, but sources said it had not been made public. However, regulatory investigations do not always lead to enforcement measures.
This is the first time it has been revealed that the SEC is investigating the NFT market, but regulators have previously not violated securities regulations when NFT issuers and buyers purchase digital tokens. Showed that you need to confirm.
SEC Commissioner and Hester Peirce of “CryptoMom” warned last year that NFT issuers “need to be careful not to accidentally create investment products.”
“Given the breadth of the NFT landscape, some of it could be within our jurisdiction,” she warned.
“We need to be careful not to create investment products, or securities. The definition of’security’can be quite broad,” Perth said.
Viewing: CoinGeek New York Panel, NFT License IP: Graphic Novels, Comic Books, Brands
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